This paper deals with the morphological theory in second language acquisition with a focus on compound words. It delves into how language is processed inside the mind and explains the key systems of word storage and computation. The paper begins with an insight into morphological processing from a psychological point of view and discusses how different languages interfere in the speaker's mind. This part is followed by an overview of English compounds, their acquisition and the main aspects of compound words in Croatian and Spanish. Finally, it showcases the research conducted among speakers of English as a second language which investigates how well they know transparent and opaque English compound words and how their native language, prof...